How to become a CFO: step-by-step instructions, recommendations and requirements

Even 20 years ago, in Russia, the duties of financial director were performed by a staff of accountants. Today, in a market economy, a country needs effective managers who can manage financial flows and engage in business development. In the article, we consider the concept, responsibilities and algorithm of actions, how to become a financial director.

Position of Director of Finance

The financial director is the head of the financial department of the enterprise. Some organizations use another definition of this position - financial adviser to the CEO.

The specifics of the work of this employee is similar to the duties of the chief accountant:

1. Lead the activities of the economic departments of the organization.
2. Determine the economic line of development of the organization. Develop measures to ensure financial growth and stability of the company and exercise control over their implementation.
3. Management and control of financial flows of the enterprise.
4. Ensuring the organization of economic security, risk analysis and control over the implementation of the activities of financial units in accordance with the legislation of the Russian Federation.
5. Financial statements.

The duties of the financial director may vary depending on the specifics of the organization. At some enterprises, he performs only the functions of chief accountant.

CFO requirements

It is extremely rare for organizations to consider candidates for the position of financial director from the outside. Usually, it is more profitable and safer for an enterprise to hire an employee who has already established himself within the company. Experience, of course, is an important indicator, but far from the last. Consider a list of basic requirements that must be considered when applying for a job as a financial director.

What you need to become a financial director:

1. Higher economic education in the following specialties - banking, enterprise economics, accounting and auditing, finance and credit. When considering applicants for a position, they most often give preference to those who have additional legal education.
2. Experience in the financial sector for at least 3 years.
3. Knowledge of the "1C" program and confident use of a PC.
4. Negotiation skills for such a position are necessary, since the CFO is involved in negotiations with partners and is authorized to solve all the important aspects of the organization related to the movement of funds.
5. Knowledge of the regulatory and legislative framework.
6. Knowledge in tax, accounting and auditing.

In most organizations, the requirements for specialists at this level are identical, but there are specific requests. This must be known in advance.

How to become a financial director from scratch

Here, rather, it is not about a large company, but about a young organization, just starting its journey. In such cases, the likelihood of taking the place of financial director, while not having the necessary experience and skills, increases several times.

In small and medium-sized businesses, the position of chief accountant can be referred to as a financial director. At the same time, most likely, it will not be possible to obtain the necessary skills, therefore a career outside the organization with such “experience” is unlikely to succeed. Therefore, first you need to get acquainted with how they become financial directors and how this position differs from the position of the chief accountant.

How is a CFO different from a chief accountant

The work of the CFO is closely related to the responsibilities of the chief accountant, however, there are fundamental differences.

The main difference is that the competence of the financial director has the ability to channel the company’s capital for certain purposes within the framework of the development of the enterprise, and the chief accountant does not have such obligations.

It is also worth noting that the work of a financial director is directly related to working with business partners. The chief accountant interacts only with government agencies.

The duties of the finance director include market analysis and the effective distribution of the organization’s capital in accordance with the firm’s requests. The responsibility of the chief accountant is to control the legality of all financial transactions of the enterprise.

From the above it follows that these two positions are on the same level, but the post of financial director is still considered the next step after working as chief accountant. Therefore, it is worth familiarizing yourself with the algorithm of actions, how to become a financial director after the chief accountant.

How to become a chief accountant

As practice shows, one experience in accounting and an economic diploma is far from enough. Therefore, we consider the ways how the chief accountant to become a financial director:

1. As a rule, finance directors, who previously worked as chief accountants, have courses in business management and management behind them.
2. Many accountants practice internships as tax or financial advisors before becoming CFOs. It would be better if the specialist gains experience as a deputy.
3. Additional legal education is considered an undoubted plus in choosing a specialist for the position of director of finance.

Professional qualities of a financial director

In addition to the general requirements for the position of financial director, a specialist must possess a number of professional qualities that are necessary in the work.

The CFO is the right hand of the CEO. Often the reliability of the organization (as a partner) is judged precisely by the work of the financial director, so the first qualities that he should have are punctuality and responsibility.

Analytical mindset - the ability to quickly assess the risks and benefits of a particular operation.

Stress resistance is an inherent quality of a person who wants to assume the post of financial director. A high post is always a big responsibility, so TOP managers often suffer from nervous conditions such as depression and apathy, which negatively affects the work process.

If a specialist has all the qualities that are necessary for this position, then, for sure, he will not have problems in work.

How to become an effective CFO

It is not so easy to get the position of financial director, but it is even more difficult to earn a good reputation in this area. Effective managers are very much in demand in the labor market, but organizations put forward serious requirements for this specialty. Still, the CFO must manage all the cash flows of the enterprise and at the same time make the work profitable. Therefore, the issue of work efficiency excites many.

Before becoming a successful financial director, a specialist, at a minimum, must receive an economic education for an understanding of financial processes. In this case, the director of finance is obliged to daily receive new knowledge and skills, as the market of supply and demand is quite flexible. Therefore, the specialist must be able to respond to all changes in the service sector that relate to his company.

Quite often, top managers take courses in oratory and sales skills.The duties of the CFO include negotiations with business entities. To convince partners of the need for a particular operation, you need the skill of managing a conversation.

In conclusion

The question of how to become a financial director worries many. There are many manuals and books, films and trainings that offer various ways to achieve the goal of becoming a director of finance. All this can be used as an additional tool in overcoming the obstacles to the coveted position. But still, the future director must understand that without professional knowledge and experience in this profession there is nothing to do.